DOTC Versus MRTC: The Blame Game

                The battle between the Department of Transportation and Communication (DOTC) and Metro Rail Transport Company (MRTC) is continuing. They are blaming each other, who made the mistakes, why the service of MRT3 became worst. Recently, the commuters  really disturbed because the train has always been damaged. The DOTC already ordered the train experts to inspect the true condition of MRT3. The government has a plan to overtake the full operation of MRT3.

                DOTC Secretary Jun Abaya pointed out that the MRTC didn’t do their obligation.  They didn’t buy any new rail coaches, crucial signaling system and didn’t upgrade its ticketing system. He emphasized that the government pays them for the rental fee for about 35 billion since 2000. So, the MRTC has no reason to develop their service. But MRTC Chairman Robert John Sobrepena answered the allegation of Sec. Abaya. He said that the government is the one who are not doing their obligation. They are always delayed with their rental payment to MRTC. So, how can they buy new equipments if  this is the system of the government?

                In the first place,the government didn’t comply the BLT (build-lease-transfer)  agreement in 1997. Based on the agreement,  the government must pay an equity rental fees to the MRTC and they will also get a 15 % on their return on investment (ROI). But what happened? They didn’t follow this agreement; they are not paying MRTC at the right time. The government also didn’t comply with their first agreement regarding about the fare.  In 1999, the approved fare would be 30 pesos per passenger but the government decreased it in 10-15 pesos. The train was designed only for 300,000 passenger, but the ridership was increased to 400,000. If we will look at this context, the MRT3 gave way for the benefits of the passengers. Beside that, it is really a big burden for them to hold and improve the train system without the cooperation of the government. They already proposed a lot of plans on how they improved the MRT3, but they always rejected their recommendations. And now the government is putting all the blame on them. As an investor in MRT3, where is the justice here?

                MRTC has a point with their sentiments, because of their conflict with the government; they decided to take over the operation of MRT3. But before the government could implement this, they need to solve a lot of problems. Not only in improving the train system in our country. But they need to win over the arbitration case in Singapore filed by MRTC because of the delayed rental payments. The MRTC also filed a case against them  for rewarding a 86.7 million dollars contract for a CNR Dalian Locomotive & Rolling Stock Company. This Chinese company will supply new 48 rail couches for the MRT3. Again, the government didn’t follow the BLT agreement. Based on their agreement, only the MRTC has the right to choose any bidders in MRT3 transactions. They are the one who built the MRT3, but it seems that they don’t have a right for what they invested.